The Economic Committee of the Republic of the Union of Myanmar held its 7/2023 Meeting at the meeting hall of the SAC Chairman Office in Nay Pyi Taw on 25 August. The Chairman of the State Administration Council (SAC) Prime Minister Senior General Min Aung Hlaing attended the meeting and delivered a speech as follows:
- Economy has two branches-internal economy and external economy. Production sector was weak, and transportation faced a lot of hardships during COVID-19 pandemic.
- Riots broke out due to political disputes after the 2020 election, and the result was a drop in the production sector and a delay in transport businesses.
- The country faced trade deficits during the terms of previous democracy governments. On average each government left behind a deficit of US$12 billion, so there was a total of US$25 billion. The deficit was reduced only through aid and loans.
- In 2021-2022, there was a drop in the production sector as it was hit by riots and violence. The country had to strive for its economic survival amidst the sanctions and disturbances.
- The government strived to promote the State economy to hug above nine per cent of GDP (+3 per cent of GDP in the 2021-22 Financial Year from -5.9 per cent of GDP in 2019-20 FY).
- On the other hand, terrorists destroyed roads, bridges, cable towers and public buildings. As the government had to spend the funds for economic development in rehabilitation activities, the country failed to achieve the required economic progress.
- Farming-based production industry must be promoted as it is the country’s main production sector. Measures were taken to develop MSMEs.
- Currently, the government spends more than US$600 million on the import of cooking oil yearly.
- Hence, the State economic promotion fund was allotted to ensure local oil sufficiency, with a plan to increase the production of cooking oil at home in 2025 and to shape the country to become an oil exporter country.
- Attempts were made to hinder the ways for the country not to get deserved foreign exchange so as to face economic crises. Therefore, the government had to prioritize businesses and the import of goods that are vital for the country and people in balancing its income and expenditure.
- Meanwhile, unscrupulous persons made misinformation to raise commodity prices. The rise in prices of fuel and chemical fertilizers for agriculture despite the efforts to ensure adequate and timely supply of those inputs is one piece of evidence.
- Some greedy businesspersons manipulate the market to hike commodity prices. Hence, officials need to take action against such manipulation under the work procedures.
- Those manipulators keep local currency kyat, foreign currencies and gold.
- Some neighbouring countries are investigating the operation of trade and services based on illegal remittance agencies (Hundi).
- Illegal remittance agencies can harm the State economy, so it is necessary to expose them to be taken action.
- In its tenure, the government experienced attacks on banks. Some banks faced bad conditions. If banking system collapses, State economy will fall down. Hence, he himself coordinated with officials and provided assistance to banks.
- Although the government provided assistance to them, suspicious moves were seen in functions of some banks at that time. Such topics were mentioned in the press conferences. Up to now, it can be seen that some banks do not operate their businesses in an honest manner. As such, it is necessary to systematically monitor the functions of banks.
- Myanmar has special economic zones and industrial zones. But, these zones were not operated with various reasons, so these zones do not have much progress.
- It is necessary to implement Kyaukpyu, Dawei and Thilawa special economic zones to have quick progress to benefit the State and neighbouring and regional countries. Likewise, the projects of these zones must be implemented as quickly as possible.
- Some greedy businesses emphasize selfishness in doing business but some focus on work process contributing to the economic development of the State. Hence, the government needs to give incentive to the latter.
- The government must reduce its control in the market economic system. But, the government intervene the economic sector due to economic attacks, sanctions and attempts to deteriorate the State economy.
- The government encourages businesspersons with incentive for their efforts to earn incomes for the State and manufacturing process.
- As our country is an agricultural country, agriculture and livestock zones and industrial zones have been allocated the land plots. So, the allotted land should really be used for operation.
- Regional and state authorities are urged to make preparations for enhancement of the inbound and outbound tourism services in the open season, and they all must review the measures of State economic promotion.
- Relevant ministries and departments need to take supervisory measures to ensure systematic management in the tourism industry. In the service sector, banking and transport systems must be good. Thus, all need to have a farsighted view in the effort for national economic growth.
- Operating economic zones is the best to expedite the momentum of the State’s economic promotion.
- The speedy commodity flow is important. Responsible officials are required to supervise transportation of goods to prevent unnecessary collection of fees along trading routes systematically.
- In border trade, different routes must be taken into consideration rather than relying on only one main route. It is necessary to upgrade Kanpaiti, Muse, Chinshwehaw, Tachilek and Myawady border trade camps.
- Similarly, measures must be taken to build railroads in the same way as roads are used in border trade.
Next, Union Ministers and deputy ministers from the Ministry of Foreign Affairs, Ministry of Home Affairs, Ministry of Border Affairs, Ministry of Investment and Foreign Economic Relations, Ministry of Information, Ministry of Religious Affairs and Culture, Ministry of Agriculture, Livestock and Irrigation, Ministry of Natural Resources and Environmental Conservation, Ministry of Electric Power, Ministry of Energy, Ministry of Industry, Ministry of Sports and Youth Affairs, Ministry of Construction, and Ministry of Commerce reported on matters that should be carried out. After hearing the reports, the SAC Chairman Prime Minister coordinated with the responsible officials to fulfill the needs and left necessary instructions.
Present were SAC members General Mya Tun Oo, Lt-Gen Moe Myint Tun, U Shwe Kyein, union ministers, union level officials, deputy ministers and officials, it is reported.
Source: GNLM (26-8-2023)
- The country faced trade deficits during the terms of previous democracy governments. On average each government left behind a deficit of US$12 billion, so there was a total of US$25 billion. The deficit was reduced only through aid and loans.
- The government strived to promote the State economy to hug above nine per cent of GDP (+3 per cent of GDP in the 2021-22 Financial Year from -5.9 per cent of GDP in 2019-20 FY).
- Terrorists destroyed roads, bridges, cable towers and public buildings. As the government had to spend the funds for economic development in rehabilitation activities, the country failed to achieve the required economic progress.
- The State economic promotion fund was allotted to ensure local oil sufficiency, with a plan to increase the production of cooking oil at home in 2025 and to shape the country to become an oil exporter country.
- Some greedy businesspersons manipulate the market to hike commodity prices. Hence, officials need to take action against such manipulation under the work procedures.
- Some neighbouring countries are investigating the operation of trade and services based on illegal remittance agencies (Hundi).
- In its tenure, the government experienced attacks on banks. Some banks faced bad conditions. If banking system collapses, State economy will fall down. Hence, he himself coordinated with officials and provided assistance to banks.
- Up to now, it can be seen that some banks do not operate their businesses in an honest manner. As such, it is necessary to systematically monitor the functions of banks.
- It is necessary to implement Kyaukpyu, Dawei and Thilawa special economic zones to have quick progress to benefit the State and neighbouring and regional countries. Likewise, the projects of these zones must be implemented as quickly as possible.
- Operating economic zones is the best to expedite the momentum of the State’s economic promotion.
- Measures must be taken to build railroads in the same way as roads are used in border trade.